Most people are thrilled about Litecoin’s halving as the expected result is an increase in Litecoin’s price. Cha-ching!
Last Halving Price: 1 month before & 1 month after, $2.87 @ halving day
Thus, when a halving is around the corner like it is in 4 days, Litecoin traders and investors anticipate a bull market. One reason for this could be Litecoin miners selling some of their holdings while the reward value is still the same. 2015’s Litecoin halving helps set a precedence for this line of thought.
However, it is not a proven pattern. For one, the price of Litecoin in July 2015 though affected by the halving to take place the following month, was affected by other factors. One being the price of Bitcoin. At the time of Litecoin’s halving in 2015, the price of Bitcoin was also experiencing an uptrend as shown in the graph below.
Bitcoin Price Before and After Litecoin Halving in 2015
Bitcoin’s market movement most times influences the direction of other cryptocurrencies. And this was no different in 2015.
What to Expect After Litecoin Halving This Year
With that in mind, let’s take a quick look at the dominant frame of mind that accompanies post-Litecoin halving.
With the Litecoin mining reward being halved there’s a direct relation between this and a bear market as most people expect the price of Litecoin to dip following the cut in the reward value for every mined block. But, is this true in reality?
The last Litecoin halving happened in August 2015. A month before, the price of Litecoin catapulted from $1.70 to $8.50, a 370% – 400% increase; an unprecedented uptrend in Litecoin history till date. The only factor the July 2015 spike could be traced to was the halving that was taking place the subsequent month.
Litecoin halving can have a positive effect on Litecoin with respect to its value. But, it is not a direct offshoot of it. That prices would spike is simply a myth which could come true. So, before making an investment decision based on the halving you may want to back your research with some more solid information from the charts.
Talking about the charts, here’s a look at Litecoin price movement for the past 8 weeks
Litecoin Price Movement in July, 2019
On the longer time frame which is weekly, the market indicates a clear uptrend. The end of the candlestick shows a pull-back. In other words, a drop in the prices despite the upward price movement. Thus, the days following Litecoin halving could see an increase in demand (buying) resulting in an increased price.